banks were also hit, with Wells Fargo & Co (WFC.N) down 6%, JPMorgan Chase & Co (JPM.N) down 5.4%, Bank of America Corp (BAC.N) 6% lower and Citigroup Inc (C.N) 4% lower. Zion Bancorp (ZION.O) dropped more than 12% and the SPDR S&P regional banking ETF (KRE.P) slid 8% after hitting its lowest point since January 2021. Shares of First Republic (FRC.N), a San Francisco-based bank, sank more than 16.5% after hitting the lowest level since October 2020, becoming the second-biggest decliner in the S&P 500 index. Greg Becker, President and CEO of SVB, speaks at the 2022 Milken Institute Global Conference in Beverly Hills, California, U.S., May 3, 2022. SVB did not respond to multiple requests for comment. However, the Information publication reported the bank told four clients that transfers could be delayed. One San Francisco-based startup told Reuters they successfully wired all their funds out of SVB on Thursday afternoon, and the funds had appeared in their other bank account as a "pending" incoming wire by 4 pm Pacific Time on Thursday. One of them is Peter Thiel's Founders Fund, according to one of the sources. Some startups have been advising their founders to pull out their money from SVB as a precautionary measure, the sources added. SVB's CEO Gregory Becker has been calling clients to assure them their money with the bank is safe, according to two people familiar with the matter. The company's stock collapsed to its lowest level since 2016, and after the market closed shares slid another 26% in extended trade. Investors in SVB's stock fretted over whether the capital raise would be sufficient given the deteriorating fortunes of many technology startups that the bank serves. The portfolio was yielding it an average 1.79% return, far below the current 10-year Treasury yield of around 3.9%. It said in an investor prospectus it needed the proceeds to plug a $1.8 billion hole caused by the sale of a $21 billion loss-making bond portfolio consisting mostly of U.S. SVB, which does business as Silicon Valley Bank, launched a $1.75 billion share sale on Wednesday to shore up its balance sheet. March 9 (Reuters) - SVB Financial Group (SIVB.O) scrambled on Thursday to reassure its venture capital clients their money was safe after a capital raise led to its stock collapsing 60% and contributed to wiping out over $80 billion in value from bank shares.
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